Finally! An Easy Guide to Get You The Right Life Insurance Plan

Below is a checklist and essential facts about life insurance plans in India which will help you select the right life insurance plan.

Study the policy details carefully to get the most from your investment plan

Life insurance purchase should be preceded by a thoughtful approach. This refers to careful study of policy details. Usually, if the policyholder survives during or throughoutthe policyduration then the risk cover of the life insurance plan will end. This means that the policyholder or his dependents won’t receive any sum assured value ofamount.

Nevertheless, if it results in an unfortunate or sudden demise of the policyholderwithinthe policy period, his dependents will receive a sum assured value of amount.

Life insurance policy- beneficial for all age groups

· You can buy life insurance plans for various needs like for savings or fortheprotection cover.

· It isa good investment instrument for retirementplans and its benefits.

· A shocking fact- Products such as ULIPs as well as insurance policies are invested into with an aim of investment related options. However, their basic function to provide insurance and protection is frequently ignored by many people.

· Life insurance plan forms one type of a financial security for a person’s family in his or her absence.

· Criticisms-One major criticism faced by life insurance plans is for their non-transparent distribution. Many find or claim a dent in the distribution system. The distributors tend to sell policies unfairly. They sell policies just to obtain higher commissions by charging higher annual premiumsto the buyers.

· However, these plans areusually very cheap. For instance, one 40 year healthy person can buy 10 year of life insurance worth Rs 50 lakhs by just paying annual premium of less than Rs 10,000.

An easy way to buy life insurance!

You can effortlessly get life insurance plans online after analyzing products from different insurance companies. Hence, you will be able to get a plan which suits your requirements and falls in your budget. All you have to do is compare several Indian insurance companies and their product offeringsthrough just browsing their company websites.

The new IRDA guidelines-

The latest IRDA guidelines are in favor ofhigher protection facility to be given to all insurance policies. There’s a surge of this factor by 7-10 times of the value of sum insured amount. It also however depends on the age of theinsured.

Another option for better investment planning-

There’s another variation known as Term plan with Premium Back. The idea is that if the policyholder survives throughout the policy term, he/she should at least get histotal premium amount. Therefore, they are preferred by most people in India.

However, it requires the person to dole out higher premiums than normal premium plans offered by Indian insurance companies. Hence, think before you take any decision.

In the end, always choose considering all your essential requirements and taking aide of a professional when needed.